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How Much Do I Pay/Get Paid?

As I am starting my small business, I slowly create a sub-branch of it to provide more services in a field that is related, but I have no experience on.

This one in particular is a venture my friend wanted to start, being that offering the services he can offer would benefit my company, I have agreed to take it under my root company, as far as ownership, branding and all that goes but have agreed to let him keep 100% of the profits of this sub-branch if he maintains it by himself, and covers its expenses.

So paying him is not something I am confused about... I am looking to hire more designers and programmers to add to my staff, not as freelance contracts but as a "as needed basis". How would I figure out how much to pay them on projects and how much do I keep... fairly that is. Thanks.

I am looking to hire more designers and programmers to add to my staff, not as freelance contracts but as a "as needed basis".

You're contradicting yourself here. "Freelance" and "as needed" are the same thing.

Originally Posted by SharifTK

How would I figure out how much to pay them on projects and how much do I keep... fairly that is. Thanks.

That's for you to decide. We all have our own ways of handling subcontractors and employees. The best answer you will find here is the obvious and simplest answer to your question: Pay for what you want. If you want to do a lot of hand-holding and nose-wiping with your subcontractors, you can pay them poorly and get poor results. Or, if you want consummate professional developers and designers, you can pay them into the (upper $XX/lower $xxx)/hour range and get fantastic (or at least, adequate) results.

Hiring contractors will obviously affect your bottom line, and the rate at which you bill will need to cover your expenses, your contractors' compensation, your compensation, and (hopefully) profit. Add to this, how much money do you want?

If this sounds oversimplified, it's because it is. It's something that one eventually figures out one way or another, either from trial and error or by observation... but never from asking a broad question in a forum, unfortunately

PS. "Fair pay" depends on your definition of fairness. I try to pay my subcontractors a little better than what they might typically earn, but that's because I'm more interested in keeping quality people and providing an incentive for great work.

That's for you to decide. We all have our own ways of handling subcontractors and employees. The best answer you will find here is the obvious and simplest answer to your question: Pay for what you want. If you want to do a lot of hand-holding and nose-wiping with your subcontractors, you can pay them poorly and get poor results. Or, if you want consummate professional developers and designers, you can pay them into the (upper $XX/lower $xxx)/hour range and get fantastic (or at least, adequate) results.

Well, actually it is and it isn't. I do out-sourced work for several clients as well as working for clients I acquire on my own. I decide what I charge, the same as any business person does. It's up to the client to decide if he wants to accept my proposal.

If you have an employee, you decide what you will pay and the employee accepts or rejects the job, generally with no input as to compensation. If you hire a free lancer (or more to the point, sub-contract to another business), that business bids your job and you decide if you want to out-source (sub-contract) to that business based on their proposal.

IMO there are too many freelancers that act like employees and you see their posts here when they are crying about getting a raise. Freelance is creating and running a business, setting your own prices and negotiating your own contracts. Both sides, client and freelancer, need to understand that.

Personally, I never work for anyone when they treat me like an employee. If I wanted to be an employee, I'd go out and find a job that gave insurance, paid vacations, sick leave, and .... I think a company car.

Linda Jenkinson"Say what you mean. Mean what you say. But don't say it mean." ~Unknown